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Fuso Pharmaceutical Industries,Ltd. (JP:4538)
:4538
Japanese Market
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Fuso Pharmaceutical Industries,Ltd. (4538) AI Stock Analysis

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JP

Fuso Pharmaceutical Industries,Ltd.

(4538)

Rating:65Neutral
Price Target:
¥2,432.00
▲(14.50%Upside)
The stock score is primarily influenced by its strong valuation, reflecting an attractive P/E ratio and good dividend yield. However, this is balanced by weak technical indicators and cash flow challenges. While the balance sheet is solid, improving cash flow and operational efficiency remain critical for sustainable growth.

Fuso Pharmaceutical Industries,Ltd. (4538) vs. iShares MSCI Japan ETF (EWJ)

Fuso Pharmaceutical Industries,Ltd. Business Overview & Revenue Model

Company DescriptionFuso Pharmaceutical Industries, Ltd. (4538) is a Japanese pharmaceutical company engaged in the research, development, manufacturing, and marketing of pharmaceutical products. The company focuses on providing high-quality injectables and other pharmaceutical solutions, serving both domestic and international markets. Fuso Pharmaceutical Industries is known for its commitment to innovation and quality in the healthcare sector, aiming to address various medical needs through its diverse product offerings.
How the Company Makes MoneyFuso Pharmaceutical Industries, Ltd. generates revenue primarily through the sale of its pharmaceutical products, particularly injectables. The company markets its products to hospitals, clinics, and other healthcare facilities, both in Japan and overseas. Revenue streams include direct sales of pharmaceutical products, partnerships, and collaborations with other pharmaceutical companies for distribution and co-development. The company may also earn income from licensing its technologies or products to other firms. Fuso Pharmaceutical Industries' emphasis on research and development helps it to continually innovate and expand its product portfolio, thereby maintaining a strong market presence and driving sales.

Fuso Pharmaceutical Industries,Ltd. Financial Statement Overview

Summary
Fuso Pharmaceutical Industries shows solid revenue growth and stable profitability margins. However, it struggles with cash flow management, as evidenced by a negative free cash flow and poor cash generation metrics. The balance sheet is robust with manageable debt levels, but improvements in cash management are necessary.
Income Statement
68
Positive
Fuso Pharmaceutical Industries has shown consistent revenue growth, with a 9.31% increase from 2024 to 2025. The gross profit margin for 2025 stands at 27.3%, indicating efficient cost management. The net profit margin improved to 4.59%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, are moderate at 6.82% and 10.39% respectively, suggesting room for operational efficiency improvements.
Balance Sheet
74
Positive
The balance sheet is stable with a debt-to-equity ratio of 0.54, reflecting prudent leverage levels. The return on equity is 7.11%, showing satisfactory returns on shareholders' investments. Equity ratio is healthy at 49.48%, indicating a strong equity base relative to total assets. However, the slight increase in total debt warrants attention for future leverage control.
Cash Flow
45
Neutral
The cash flow statement shows challenges, with a negative free cash flow of -5.43 billion yen in 2025, marking a significant decline. The operating cash flow to net income ratio is negative, highlighting cash generation issues. The free cash flow to net income ratio is also negative, underscoring the need for improved cash management practices.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue60.56B55.41B51.02B49.63B49.25B
Gross Profit16.53B13.52B13.74B13.40B14.11B
EBITDA6.29B4.20B4.63B4.47B4.79B
Net Income2.78B1.38B1.60B1.48B1.61B
Balance Sheet
Total Assets79.05B75.80B72.47B69.33B69.88B
Cash, Cash Equivalents and Short-Term Investments6.26B5.12B8.01B7.35B7.07B
Total Debt21.29B12.72B12.63B12.09B13.20B
Total Liabilities39.94B39.14B36.82B34.80B36.19B
Stockholders Equity39.11B36.66B35.65B34.53B33.68B
Cash Flow
Free Cash Flow-5.43B-2.96B1.28B2.01B2.02B
Operating Cash Flow-3.31B627.00M2.85B3.50B3.23B
Investing Cash Flow-3.17B-3.54B-1.37B-1.55B-978.00M
Financing Cash Flow7.62B14.00M-813.00M-1.67B-2.45B

Fuso Pharmaceutical Industries,Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2124.00
Price Trends
50DMA
2168.86
Negative
100DMA
2278.85
Negative
200DMA
2357.41
Negative
Market Momentum
MACD
-18.45
Negative
RSI
46.73
Neutral
STOCH
63.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4538, the sentiment is Neutral. The current price of 2124 is above the 20-day moving average (MA) of 2103.45, below the 50-day MA of 2168.86, and below the 200-day MA of 2357.41, indicating a neutral trend. The MACD of -18.45 indicates Negative momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4538.

Fuso Pharmaceutical Industries,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥8.85B16.22
2.53%2.90%-21.60%
70
Outperform
¥5.40B18.41
3.34%5.93%
68
Neutral
¥34.61B18.34
3.04%8.07%-45.20%
65
Neutral
¥18.51B6.46
3.98%9.31%-340.82%
50
Neutral
¥10.03B155.65
1.04%0.66%-40.86%
46
Neutral
C$197.02M-3.33-23.14%2.65%20.75%-0.36%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4538
Fuso Pharmaceutical Industries,Ltd.
2,124.00
-178.76
-7.76%
JP:4512
Wakamoto Pharmaceutical Co., Ltd.
291.00
40.31
16.08%
JP:4524
Morishita Jintan Co., Ltd.
2,186.00
70.84
3.35%
JP:4539
Nippon Chemiphar Co., Ltd.
1,497.00
-38.73
-2.52%
JP:4577
Daito Pharmaceutical Co., Ltd.
1,150.00
40.16
3.62%

Fuso Pharmaceutical Industries,Ltd. Corporate Events

Fuso Pharmaceutical Announces Executive Personnel Changes
Jun 25, 2025

Fuso Pharmaceutical Industries, Ltd. announced personnel changes in its executive officer team following a Board of Directors meeting on June 25, 2025. The changes include the appointment of new executive officers and the reappointment of six current members, indicating a strategic move to strengthen its leadership structure.

Fuso Pharmaceutical Appeals Patent Infringement Ruling
Jun 6, 2025

Fuso Pharmaceutical Industries, Ltd. has filed an appeal with the Supreme Court following a judgment in a patent infringement lawsuit involving their oral antipruritus agent, Nalfurafine Hydrochloride OD Tablets. The Intellectual Property High Court had previously ruled in favor of Toray Industries, Inc., ordering Fuso to pay over 7 billion yen in damages. The company maintains that their product does not infringe on Toray’s patent rights and is seeking a reversal of the decision.

Fuso Pharmaceutical Maintains Financial and Dividend Forecasts Amid Legal Challenges
Jun 3, 2025

Fuso Pharmaceutical Industries, Ltd. announced that there will be no revisions to its financial results forecast for the fiscal year ending March 31, 2026, despite a recent patent infringement lawsuit. The company also confirmed that there will be no changes to its dividend forecast, signaling stability in its financial outlook and commitment to shareholder returns.

Fuso Pharmaceutical Secures Overdraft Agreement Amid Legal Dispute
Jun 2, 2025

Fuso Pharmaceutical Industries, Ltd. has entered into a special overdraft agreement with Sumitomo Mitsui Banking Corporation to secure mid- to long-term liquidity following a court ruling against them in a patent infringement lawsuit. This agreement, which is unsecured and has a contract limit of 8 billion yen, is intended to address financial obligations resulting from the judgment, although it will not affect the company’s financial forecast for the fiscal year ending March 31, 2026.

Fuso Pharmaceutical Adjusts Financial Results Due to Litigation Losses
May 28, 2025

Fuso Pharmaceutical Industries, Ltd. announced corrections to its financial results for the fiscal year ended March 31, 2025, due to a provision for litigation losses related to a patent infringement lawsuit. This adjustment significantly impacts the company’s financial statements, resulting in an extraordinary loss for fiscal year 2024 and necessitating revisions to key financial documents.

Fuso Pharmaceutical Faces Partial Setback in Patent Infringement Case
May 27, 2025

Fuso Pharmaceutical Industries, Ltd. announced that the Intellectual Property High Court partially upheld a patent infringement claim by Toray Industries, Inc. regarding their product, Nalfurafine Hydrochloride OD Tablets. The court ordered Fuso to pay damages, impacting their financial results for the fiscal year ending March 2025. Fuso plans to appeal the decision to the Supreme Court, although their financial forecast for the fiscal year ending March 2026 remains unchanged.

Fuso Pharmaceutical Reports Strong Financial Growth and Increased Dividends
May 16, 2025

Fuso Pharmaceutical Industries, Ltd. reported a significant improvement in its financial performance for the fiscal year ended March 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 9.3% increase in net sales and over 100% growth in operating and ordinary profits, indicating strong operational efficiency and market demand. The company also announced an increase in annual dividends per share, reflecting its robust financial health and commitment to shareholder returns.

Fuso Pharmaceutical Announces Leadership Changes to Drive Growth
May 9, 2025

Fuso Pharmaceutical Industries, Ltd. announced a change in its leadership structure, appointing Mikihiro Toda as a new Representative Director to enhance management efficiency and support its long-term growth strategy. Additionally, Yukari Ikeno has been nominated as a candidate for Outside Director, while Minoru Sudo will retire from his position as Outside Director.

Fuso Pharmaceutical Reports Strong 2025 Financial Performance Amid Future Challenges
May 9, 2025

Fuso Pharmaceutical Industries reported a significant improvement in its financial performance for the fiscal year ending March 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 9.3% rise in net sales and over 100% growth in operating and ordinary profits, reflecting strong operational efficiency and market demand. Despite these gains, the forecast for the next fiscal year anticipates a slowdown in profit growth, indicating potential challenges ahead.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025